Question
Three years ago Erika spent $1000 to purchase a 12-year, $1000 par-value T-bond with a 1.5% annual coupon. Today the bond's YTM 1%. If Ishmael
Three years ago Erika spent $1000 to purchase a 12-year, $1000 par-value T-bond with a 1.5% annual coupon. Today the bond's YTM 1%. If Ishmael holds this bond to maturity, what internal rate of return will he earn on this investment?
a. 2.5%
b. 3.5%
c. 0.5%
d. 1.5%
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
